New Issue: RBC prices $1.068 million 0% bearish notes linked to homebuilders

By Angela McDaniels

Seattle, April 27 - Royal Bank of Canada priced a $1.068 million issue of 0% bearish buffered equity investment notes due Oct. 30, 2008 linked to a basket of homebuilders' stocks, according to a 424B5 filing with the Securities and Exchange Commission.

The basket includes equal weights of California Coastal Communities, Inc., KB Home, Lennar Corp., Levitt Corp., Meritage Homes Corp., M/I Homes, Inc. and Standard Pacific Corp.

At maturity, investors will receive par plus 1% for each 1% decline in the basket, up to a maximum gain of 50%.

If the basket increases by 20% or less, the payout will be par. Investors will lose 1% for each 1% the basket advances beyond 20%.

RBC Capital Markets Corp. is the agent.

Issuer:	Royal Bank of Canada
Issue:	Bearish buffered equity investment notes
Underlying stocks:	California Coastal Communities, Inc., KB Home, Lennar Corp., Levitt Corp., Meritage Homes Corp., M/I Homes, Inc. and Standard Pacific Corp., equally weighted
Amount:	$1.068 million
Maturity:	Oct. 30, 2008
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus 1% for each 1% basket decrease, capped at 50%; par if basket increases by 20% or less; 1% loss for each 1% gain beyond 20%
Initial share prices:	$18.64 for California Coastal, $44.07 for KB Home, $43.14 for Lennar, $9.01 for Levitt, $32.56 for Meritage, $28.53 for M/I Homes and $22.06 for Standard Pacific
Pricing date:	April 25
Settlement date:	April 30
Agent:	RBC Capital Markets Corp.
Agent fees:	2.75%

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